Lost internet connection in the middle of a single player campaign? You cannot save the progress until you get it back.
You know you don't have to save to the cloud... saving locally works fine, offline also.
Formatted your harddrive? Cannot backup your save files because they are encrypted.
Back in the 90's I had to format all the time... for my last 2 PC's - formatted each once, never had to again... what are you doing that requires constant formatting? Can you not simply copy the encrypted save files or the folder they are in (haven't needed to try myself)?
Want to change your gamertag? It will cost you money.
Common business practice. From WoW to the 360.
Have to update the GFWL client? You have to restart a game multiple times over.
Never had this issue, but Batman AA takes a whole 10 seconds to load up...
Want to setup a multiplayer match? Pray to god that GFWL servers are not busy/laggy.
Now this one I'll agree with, but GFWL are far from the worst offender in this area.